“As financial companies transition to a cloud-native environment, cost reduction, application modernization, security management, and safe use of artificial intelligence (AI) are of utmost importance.”

At the 'SUSE Open Source Day for Financial IT Leaders in the AI Era' held at the Conrad Hotel on the 2nd, Werner Knoblich, CRO of SUSE Software Solutions (SUSE), announced four key points to note regarding the transition to cloud native in the financial sector.

Werner CRO said that the two major issues that have recently become important topics among IT companies and professionals are cost efficiency management and application modernization, and that these issues are among the most critical issues that IT organizations must address in the past, present, and future.

In particular, the financial sector is striving to build a more sustainable and economical IT infrastructure and is seeking technological solutions to effectively manage a distributed environment to achieve cost efficiency. It was mentioned that this can be largely summarized into four key points: cost reduction, application modernization, security management, and safe use of artificial intelligence (AI).
br /> First of all, the most important factor that financial companies consider when transitioning to a cloud native environment is cost management.

CRO Werner said cost issues have always been at the heart of IT operations for decades and will continue to be important in the future.

Financial institutions in particular face the challenge of managing complex operating environments alongside existing legacy systems in a distributed cloud environment while also increasing cost efficiency.

That is, performance must be maintained while reducing costs in a mixed environment of public cloud, private cloud, and multi-cloud environments.

The second is application modernization.

As demand for digital services soars, financial firms are under pressure to bring new services to market quickly.

In particular, they are facing the challenge of maintaining existing legacy systems while seamlessly integrating them with cloud-native environments.

Amid the technological and cost pressures facing businesses, solving two key challenges is to provide rapid services and integrate existing systems.

Thirdly, the most important issue in a cloud native environment is security.

In a complex environment where cloud environments and legacy systems coexist, financial companies must safely protect customer information from ongoing cyberattacks.

Financial services companies are particularly sensitive to security threats, and security management capabilities are a key factor in determining the success of the transition process.

Finally, a factor that is attracting the attention of financial institutions is the safe use of artificial intelligence (AI).

The financial industry is accelerating the adoption of AI technology to increase competitiveness, but internal corporate data is being used to train AI models.Using it improperly can lead to great risks.

Therefore, companies are focusing on establishing systems that can manage AI in a safe and reliable manner.

To successfully transition to a cloud-native environment, financial firms need open yet enterprise-optimized solutions that focus on these four key elements.

In particular, an integrated management system that can efficiently manage various cloud environments and Linux-based systems is being emphasized.

Werner CRO cited Deutsche Bank as a real-world example.

Deutsche Bank successfully manages its complex, heterogeneous Linux environment with a solution from SUSE.

Deutsche Bank migrated approximately 15,000 Red Hat servers to SUSE support overnight, maintaining system stability without any migration or disruption.

We also enjoyed cost savings while avoiding the forced server migration suggested by Red Hat.

The SUSE solution is designed to support various Linux environments with a single management tool, significantly reducing the operational burden on financial companies.

“The transition to cloud native can provide financial institutions with technological innovation while also providing a combination of benefits such as cost reduction, service modernization, enhanced security, and AI utilization,” said Werner CRO. “However, the ability to effectively manage various issues that may arise in a complex environment is essential.”